Missile deal worth up to $2 billion

Raytheon has received a $165 million contract for continued production of the AIM-120 Advanced Medium-Range Air-to-Air Missile, with options that could bring the contract value to nearly $2 billion.

Raytheon has received a $165 million contract for continued production of the AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM), with five additional annual options that bring the potential contract value to nearly $2 billion over the next eight years.

The award was made by the US Air Force Air Armament Centre Counterair Joint Systems Program Office (JSPO).

According to Raytheon, the initial award is a $165 million firm-fixed price contract for the production of 387 AMRAAMs, supporting missile deliveries, program engineering and logistic services through August 2004.

The missiles will be produced for the US Air Force and Navy and foreign military sales customers, Saudi Arabia and Japan.

The contract provides five additional years of fixed price options, which will extend the deliveries and engineering services through 2010. The award also covers associated warranties, software upgrades, instrumentation units and spares.

‘With options, this contract provides for continued AMRAAM production for the next eight years, generating sales approaching $2 billion,’ said Charles D. Anderson, vice president of Raytheon’s air-to-air product line.

AMRAAM is a software-driven, radar-guided missile that gives pilots the ability to ‘launch and leave’ and to engage multiple targets during a single engagement.

AMRAAM is fully operational on the F-15, F-16, F/A-18, the German F4F, the UK Sea Harrier, Swedish JA-37 Viggen and the JAS-39 Gripen. It is currently being integrated on the F-22, Eurofighter, Harrier II Plus, Tornado and the Joint Strike Fighter.